Backtest: What Happens When You Buy Options During Extreme Fear
Fear & Greed = 11. Bitcoin at $62,873. Here’s what the data shows. February 5, 2026. Fear & Greed Index: 11. Extreme Fear. Most people were selling. Bitcoin was at $62,873. If you had bought a 10% out-of-the-money call option that day — 7 days later Bitcoin hit $70,290. An 11.7% move. That option returned +4,991%. This Isn’t Luck. It’s a System. I backtested 400 days of data. Strategy: when Fear & Greed < 20 + large liquidation event happen simultaneously, buy 10% OTM options, hold 7 days. ...